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Task allocation and innovation: Revisiting the role of vocational education and training in manufacturing firms

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  • Matthies, Eike
  • Thomä, Jörg

Abstract

This paper examines the role of vocational education and training (VET) in innovation by comparing the VET workforce's participation in innovation with that of university graduates, such as scientists and engineers. Using individual-level data from the German manufacturing sector, we distinguish between initial VET qualifications (acquired through dual apprenticeships) and higher VET qualifications (such as master craftsmen or technicians). The results confirm that university graduates dominate continuous research and development (R&D) activities. However, VET-qualified employees - especially those with higher VET qualifications - play a substantial role in both the invention and implementation phases of the firm's innovation process. Initial VET graduates are particularly active in implementation, notably in introducing new machinery, equipment, and technologies. Higher VET graduates are crucial in bridging the gap between R&D and the shop floor, facilitating knowledge transfer between different qualification groups. These participation patterns vary with firm size, with large firms showing clearer task allocation and specialisation. Overall, the paper's findings highlight that innovation in manufacturing relies on the complementary strengths of vocational and academic qualifications, with implications for policy, management, and future research.

Suggested Citation

  • Matthies, Eike & Thomä, Jörg, 2025. "Task allocation and innovation: Revisiting the role of vocational education and training in manufacturing firms," ifh Working Papers 47/2025, Volkswirtschaftliches Institut für Mittelstand und Handwerk an der Universität Göttingen (ifh), revised 2025.
    • Handle: RePEc:zbw:ifhwps:309420
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    References listed on IDEAS

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    More about this item

    Keywords

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    JEL classification:

    • I2 - Health, Education, and Welfare - - Education
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • M53 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Training
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives

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